BlackLine (NASDAQ:BL) vs. Arteris (NASDAQ:AIP) Financial Analysis

Arteris (NASDAQ:AIP) and BlackLine (NASDAQ:BL) are both small-cap technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.

Analyst Ratings

This is a breakdown of recent ratings for Arteris and BlackLine, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arteris	1	0	6	0	2.71
BlackLine	3	5	5	0	2.15

Arteris presently has a consensus price target of $35.86, indicating a potential upside of 101.44%. BlackLine has a consensus price target of $39.08, indicating a potential upside of 50.96%. Given Arteris’ stronger consensus rating and higher probable upside, research analysts plainly believe Arteris is more favorable than BlackLine.

Risk & Volatility

Arteris has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500. Comparatively, BlackLine has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.

Profitability

This table compares Arteris and BlackLine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arteris	-44.83%	-184.29%	-21.38%
BlackLine	5.37%	23.73%	4.88%

Earnings & Valuation

This table compares Arteris and BlackLine”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arteris	$84.61 million	10.34	-$34.75 million	($0.89)	-20.00
BlackLine	$700.43 million	2.15	$24.17 million	$0.66	39.23

BlackLine has higher revenue and earnings than Arteris. Arteris is trading at a lower price-to-earnings ratio than BlackLine, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

64.4% of Arteris shares are owned by institutional investors. Comparatively, 95.1% of BlackLine shares are owned by institutional investors. 23.3% of Arteris shares are owned by company insiders. Comparatively, 9.1% of BlackLine shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

BlackLine beats Arteris on 8 of the 14 factors compared between the two stocks.

About Arteris

Arteris, Inc. provides semiconductor interconnect intellectual property (IP) and System-on-Chip (Soc) Integration Automation software solutions (SIA) in the Americas, the Asia Pacific, Europe, and the Middle East. The company develops, licenses, and supports the on-chip interconnect fabric technology used in Soc designs and Network-on-Chip (NoC) interconnect IP. Its products include FlexNoC and FlexWay silicon-proven interconnect IP products; Ncore, a silicon-proven and cache coherent interconnect IP product that provides scalable, configurable, and area efficient characteristics; and CodaCache, a last-level cache semiconductor IP product. The company also offers SIA products comprising Magillem Connectivity that shortens and streamlines the SoC integration process; and Magillem Registers and CSRCompiler that addresses hardware-software integration challenges for SoCs. The company serves semiconductor manufacturers, original equipment manufacturers, hyperscale system houses, semiconductor design houses, and other producers of electronic systems. Arteris, Inc. was founded in 2003 and is headquartered in Campbell, California.

About BlackLine

BlackLine, Inc. operates a cloud-based software platform which is designed to transform accounting and finance operations for organizations of all types and sizes. Its scalable platform supports critical accounting processes such as the financial close, account reconciliations, intercompany accounting, and controls assurance. The company was founded by Therese Tucker in May 2001 and is headquartered in Woodland Hills, CA.